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Yesterday (July 1), Warner Music Group and personal funding large Bain Capital unveiled their plans for a $1.2 billion music rights-buying three way partnership.
MBW reported that roughly half of the $1.2 billion could be made up of debt, half with money, with equal legal responsibility on either side of the JV.
Now we all know the finer particulars of the association between WMG and Bain, courtesy of a recent SEC submitting.
The three way partnership was formally established on June 29, 2025, by means of agreements between a WMG subsidiary known as WMG BC Holdco and a Bain Capital subsidiary known as BCSS W JV Investments (B), L.P (BainCo).
This duo have shaped a joint entity known as “Beethoven JV 1 LLC” (WMBC) as their 50/50 partnership automobile.
In line with the SEC submitting, the partnership’s $1 billion-plus struggle chest is damaged down as $500 million in fairness capital break up equally between the companions (which clearly equals every celebration investing $250 million apiece).
The fund additionally contains “roughly $500 million in preliminary warehouse debt commitments” secured straight by WMBC’s music catalog belongings, with the power to “enhance the scale of the [debt] facility to $700 million,” bringing the entire to $1.2 billion.
Curiously, the SEC submitting reveals that JV is designed as the primary of doubtless a number of joint ventures.
In line with the submitting, “the JV Settlement contemplates the formation of extra 50/50 WMGCo/BainCo JVs,” suggesting Warner and Bain might launch extra acquisition automobiles.
Every associate has additionally granted the three way partnership a “proper of first alternative” on any catalog acquisitions they’re contemplating that meet specified monetary standards.
WMG and Bain Capital mentioned of their official announcement on Tuesday (July 1) that they’ll supply and purchase the catalogs collectively, whereas WMG will handle all elements of selling, distribution, and administration.
As we identified yesterday, the funds is likely to be deployed swiftly: Warner and Bain are understoof to be mulling the acquisition of the Pink Sizzling Chili Peppers’ recorded music catalog for round $350 million.
WMG and Bain Capital mentioned that they’d be focusing on “legendary” music catalogs throughout each recorded music and music publishing.
“Augmenting our deep experience and world infrastructure with Bain Capital’s monetary prowess and perception in music will make us the vacation spot of alternative for preeminent catalogs.”
Robert Kyncl, WMG (through assertion issued July 1)
In an announcement issued on Tuesday, Warner Music Group CEO Robert Kyncl mentioned: “Iconic artists and songwriters select WMG to develop their legacies and introduce their artwork to new generations by means of impactful and revolutionary campaigns.”
He added: “Augmenting our deep experience and world infrastructure with Bain Capital’s monetary prowess and perception in music will make us the vacation spot of alternative for preeminent catalogs.”
In the meantime, as reported in a separate story on Tuesday, Warner introduced what it refers to as “a strategic restructuring plan… designed to unencumber funds to put money into music and to speed up the Firm’s long-term development”.
In a notice to employees despatched on Tuesday and obtained by MBW, Warner Music Group CEO Robert Kyncl referred to it because the “remaining steps in our plan to assist future-proof the corporate”.
WMG says in its SEC submitting that it “expects the Plan to generate pre-tax value financial savings of roughly $300 million on an annualized run-rate foundation by the top of fiscal 12 months 2027 and expects nearly all of the price financial savings underneath the Plan to be accretive to Adjusted OIBDA”.
Simply over half of that annual $300 million cost-cutting goal ($170 million) shall be achieved through headcount reductions at WMG, mentioned the corporate.
An additional $30 million of financial savings shall be achieved by lowering prices (like admin and actual property bills) straight associated to the headcount reductions. The remainder of the cost-cutting will goal SG&A bills.
In its SEC submitting, Warner mentioned it expects this plan to be “absolutely applied by the top of calendar 12 months 2026”.Music Enterprise Worldwide
